Policy Exchange

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Policy Exchange's offices at Clutha House, 10 Storey's Gate

Policy Exchange is a neoconservative orientated think-tank with close ties to Conservative leader David Cameron. [1] It was launched in April 2002 by Francis Maude and Archie Norman with Nicholas Boles as its founding director.[2] It is part of the Stockholm Network [3] a working group of European market-oriented think-tanks.

In a March 2009 presentation Tim Montgomerie and Matthew Elliott described Policy Exchange as part of the infrastructure of the conservative movement in Britain. [4]


Origins and launch

Policy Exchange was established by a group of Conservative MPs who had backed Michael Portillo’s campaign in the 2001 Conservative leadership contest. Portillo, who had recently admitted having had homosexual experiences, advocated a shift towards more liberal social attitudes, whilst maintaining a commitment to right-wing economic policy. Dubbed ‘Portillistas’ by Westminster commentators, Portillo’s backers saw themselves as modernisers of an out of touch party which had put off potential voters through its negativity, xenophobia and social conservatism.

Portillo withdrew from the Conservative leadership race on the evening of 17 July 2001 and subsequently announced that he would leave politics. According to the Independent the eleven Shadow Cabinet colleagues who had backed him were subsequently dubbed ‘the living dead’ in Westminster. [5]

Only days later, one of the ‘living dead’, Archie Norman, told the Daily Telegraph’s Rachel Sylvester that he and other Portillo supporters were planning to set up a think-tank saying: ‘I came into public life to help transform the Conservative Party so it can win again, and that's what I'm still about.’ [6] On 21 July the Daily Telegraph ran a front page headline, ‘Portillo supporters to fight on’. Archie Norman was quoted as saying:

We've got hundreds of thousands of people who don't want to lose what we were creating, we've got financial support from people who wanted to invest in this as the future of the party and we would like to find a way of channelling that and harnessing it. [7]

That August the Daily Telegraph published a letter from the ‘Portillistas’ in which they said they planned to establish ‘a new forum, firmly rooted within the party, devoted to developing the ideas that will form the basis of a genuinely modern Conservative Party.’ [8] The letter was signed by Francis Maude, Archie Norman, Tim Yeo, Andrew Mackay, Peter Ainsworth, Theresa May, Edward Garnier, Peter Lilley, Damian Green, Nicholas Soames, Julie Kirkbride, Stephen Dorrell and Nicholas Gibb. [9]

In early October, a week before the Tory Party Conference, the party’s new leader Iain Duncan Smith reportedly met for private talks with Francis Maude, and the latter agreed to delay the launch of the think-tank until after the party conference. [10] The truce was cemented with an offer from the ‘Portillistas’ that Iain Duncan Smith would be appointed Honorary President of the think-tank [11] – an offer which apparently came to nothing.

The logos for 'XChance', as Policy Exchange was originally branded in 2001, and the affiliated group Conservatives for Change or 'CChange'. The two were presumably kept separate to allow Policy Exchange to apply for charitable status as a non-partisan organisation.

Archie Norman, Francis Maude, and their allies decided to set up two seperate think-tanks as part of their modernisation project. One, XChange Ideas or simply XChange, would be rebranded as Policy Exchange a few months later. A company limited by guarantee, formed in October 2001, became XChange Ideas on 9 November 2001. A seperate company Conservatives for Change was also was set up that October, and was branded CChange. The two were presumably kept seperate to allow Policy Exchange to apply for charitable status as a non-partisan organisation. Conservatives for Change supplied the initial funding for Policy Exchange, with a loan of £75,000. [12]

In December the group set up the websites cchange.org.uk and xchange.org.uk for people to register their interest in the projects prior to the launch of XChange or Policy Exchange's full website.

The full website <http://www.policyexchange.org.uk> was registered on 28 January 2002 and went live a few months later. [13] Policy Exchange was officially launched at the Tate Gallery in Central London on the evening of 29 April 2002. [14]

Charitable Status

Policy Exchange applied for charitable status and was registered with the Charity Commission on 3 March 2003. Registering as a charity can provide numerous tax breaks for think-tanks. Charities do not normally have to pay corporation tax, capital gains tax, or stamp duty, and gifts to charities are free of inheritance tax. They can also pay significantly reduced business rates on the buildings they occupy.

Policy Exchange’s application to the Charity Commission was based on the application made by the New Labour orientated think-tank IPPR. Former Policy Exchange director Anthony Browne told the Guardian: ‘We basically borrowed the IPPR's claim for charitable status and changed the words “centre-left” to “centre-right”’. [15] Similarly Browne’s predecessor, Nicolas Boles has said: “Before we set up Policy Exchange I went and chatted with Matthew Taylor, a friend, and when we approached the Charity Commission we put in an almost identical proposal to them. The joke, which is not quite true, is that the only difference was substituting 'centre-right' for 'centre-left'.” [16]

On British Muslims

In August 2006 Policy Exchange hosted a seminar the title of which was 'Why Are Britain's Universities Incubating Islamist Extremism?'. [17] It was attended by right-wing figures including Anthony Glees, the author of When Students Turn to Terror; the Scottish right-wing intellectual Tom Gallagher; and the right-wing Irish historian Ruth Dudley Edwards.

In an online article promoting the event [18] and at the seminar itself, [19] Tom Gallagher argued that a main cause of 'radicalisation' amongst young Muslims was not injustice, but that Muslim students are not intellectually capable of achieving in higher education.

Funding and Finances

Graph from the Charity Commission showing Policy Exchange's financial history.

In its early years Policy Exchange was a medium sized think-tank, operating on an annual income of around half a million pounds. However after David Cameron was elected leader of the Conservative Party its income increased substantially.

In its latest financial statements, made up to 30 September 2008, the think-tank reported receiving over £2.6 million. This figure put Policy Exchange ahead of the New Labour affiliated think-tank Demos, which saw its income decline over the same period, but still behind the Institute for Public Policy Research, which has enjoyed an income of over £3 million for several years.

Policy Exchange's main source of income has been through donations, but it also receives significant funding through the sponsorship of research and its 'Business Forum', which is part of the think-tank's 'Corporate Engagement'. [20] In early 2006 PR Week reported that companies were paying £5,000 to £10,000 to be part of the forum, and that members included BP, SAB Miller, BSkyB and Bupa. [21] Policy Exchange states that corporations cannot commission research, but that they can 'contribute ideas and give advice to Policy Exchange’s research programme[s]'. [22] In its 2008 accounts, Policy Exchange reported that:

The activities of the Business Forum group made a particularly strong contribution to fundraising during the period, with the number of members more than doubling to 27. The Policy Exchange Business Forum exists to engage corporates in the research work of the charity, by hosting regular round table events where members can come together to listen to influential policy makers and discuss the issues raised. Many members went on to work directly with our research teams by giving financial and/or research support. [23]

Source of Income 2002 2003 2004 2005 2006 2007
Donations £67,030 £359,794 £435,066 £473,296 £796,689 £1,143,266
Research sponsorship - £12,500 £57,310 £55,342 £41,000 £506,022
Business Forum membership- £2,348 £18,930 £3,639 £46,417 £90,875
Sale of Reports - £961 £963 £2,191 £2,294 £12,875
Localis Research [24] - £10,297 £15,035 £30,000 £14,250 £20,000
Corporate Event Sponsorship - - - - £78,133 -
Management charges £7,909 £33,767 - - - -
Premises charges £7,500 £24,750 - - - -
Interest received - £236 £2,651 £3,735 £3,775 £11,958
Miscellaneous income - - - - £1,074 £1,829
Total Income £82,439 £444,653 £529,955 £568,203 £983,632 £1,786,825

The table on the right consolidates information on the sources of Policy Exchange’s income from 2002 to 2007 as provided in its annual financial statements.

The financial statements are made up to 30 September in each reporting year, meaning for example that the figures for 2007 here represent not that calendar year but the period from 1 October 2006 to 30 September 2007.

Although available, information from the think-tank’s 2008 financial statements have not been included in this table as they no longer provide as detailed a breakdown of the various sources of income. From October 2007, income from donations and research sponsorship are given as one lump some (reported as ‘Voluntary Income’), and Business Forum membership, the sale of reports and other sources of income are given as another lump sum (reported as ‘Activities for generating funds’). [25]

Financial Statements

Policy Exchange Financial Statements made up to 30 September 2002
Policy Exchange Financial Statements made up to 30 September 2003
Policy Exchange Financial Statements made up to 30 September 2004
Policy Exchange Financial Statements made up to 30 September 2005
Policy Exchange Financial Statements made up to 30 September 2006
Policy Exchange Financial Statements made up to 30 September 2007
Policy Exchange Financial Statements made up to 30 September 2008

External Resources

Neocon Europe Policy Exchange
Internet Archive Wayback Machine, policyexchange.org.uk

Address


Clutha House
10 Storey's Gate
London SW1P 3AY
Telephone: 020 7340 2650
Fax: 020 7222 5859
Email: info@policyexchange.org.uk

References

  1. ↑ Andy Beckett, ‘What can they be thinking?’, Guardian, 26 September 2008.
  2. ↑ Ed Vaizey, The New Breed of Policy Wonk is a Doer and a Thinker, Sunday Times, 14 July 2002.
  3. ↑ Think Tank details, Stockholm Network, accessed 7 April 2009.
  4. ↑ Tim Montgomerie, The growth of Britain's conservative movement, ConservativeHome, 14 March 2009.
  5. ↑ Andrew Grice, ‘The living dead' ponder their future after backing wrong horse in leadership contest’, Independent, 20 July 2001; p.10.
  6. ↑ Rachel Sylvester, ‘Norman still selling Portillo's dream’, Daily Telegraph, 21 July 2001.
  7. ↑ Rachel Sylvester, ‘Portillo supporters to fight on’, Daily Telegraph, 21 July 2001; p.1.
  8. ↑ ‘Letters: Leader needs radical new advisory forum’, Daily Telegraph, 10 August 2001; p.29.
  9. ↑ ‘Letters: Leader needs radical new advisory forum’, Daily Telegraph, 10 August 2001; p.29.
  10. ↑ David Crackwell, ‘Duncan Smith in secret deal with Portillistas Tory leader agrees truce before party conference’, Sunday Telegraph, 7 October 2001
  11. ↑ Rachel Sylvester, ‘We must change to survive, say Tory webmasters’, Daily Telegraph, 8 December 2001; p.14.
  12. ↑ see Policy Exchange Financial Statements made up to 30 September 2002, p.4
  13. ↑ The first entry in the internet archive for the website is from 25 May 2002. See Internet Archive Wayback Machine, policyexchange.org.uk [Accessed 5 February 2010].
  14. ↑ Patrick Wintour, ‘People want say in local services’, Guardian, 29 April 2002; Melissa Kite, ‘Portillo’s allies call for more mayors’, The Times, 29 April 2002
  15. ↑ Andy Beckett, ‘What can they be thinking?’, Guardian, 26 September 2008.
  16. ↑ David Hencke, ‘The new Conservative generation’, Guardian, 7 June 2008
  17. ↑ Tom Gallagher, 'Wrong Muslim voices on campus', The First Post, 21 August 2006. [PDF created 25 February 2010]
  18. ↑ Tom Gallagher, 'Wrong Muslim voices on campus', The First Post, 21 August 2006. [PDF created 25 February 2010]
  19. ↑ Ruth Dudley-Edwards, ‘Fundamentalist Lessons to be learnt by Irish Academe', Sunday Independent (Ireland), 27 August 2006.
  20. ↑ PDF Copy of <http://www.policyexchange.org.uk/forum/> created 11 February 2010
  21. ↑ Ravi Chandiramani, 'British politics is hotting up at last and PA professionals are preparing for the change in leadership and policy', PR Week, 16 February 2006.
  22. ↑ PDF Copy of <http://www.policyexchange.org.uk/forum/> created 11 February 2010
  23. ↑ Policy Exchange Financial Statements made up to 30 September 2008, p.4
  24. ↑ This income is described in the 2007 accounts as ‘Share of research projects paid by Localis Research Ltd’. In the previous statements it is referred to as ‘Recharge of research projects to Localis Research Ltd’
  25. ↑ The 2008 Financial Statements do not provide even this information as to what makes up the income reported as ‘Voluntary Income’ or ‘Activities for generating funds’, rather this has been deduced from a comparison with the figures given in the 2007 accounts. The figure on page 6 of the 2008 accounts for ‘Voluntary Income’ in the previous year is equal to the total income from donations and research sponsorship in the 2007 accounts. Similarly the figure given there for ‘Activities for generating funds’ is equal to the aggregate amount given in the 2007 accounts for business forum membership, the sale of reports and the share of research projects paid by Localis Research Ltd.
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